S&P evaluates Azerbaijan's net international investment position until 2029

Azerbaijan's net international investment position will average approximately 76% of GDP in 2025-2028, Report informs referring to S&P Global Ratings.

"Azerbaijan's external balance sheet remains one of its strongest credit features, underpinned by the sizable foreign-currency assets accumulated in SOFAZ. These buffers provide substantial insulation against external shocks. We expect external liquid assets to remain above the country's external debt stock through at least 2028, while the net international investment position averages about 76% of GDP over 2025-2028," reads the message.

"Although the economy remains exposed to terms-of-trade volatility, the scale of Azerbaijan's net external asset position should materially mitigate the impact of adverse price cycles on external liquidity and the broader economy. Current budget discussions indicate that the government will target a central government deficit of around 2.3% of GDP for 2026, based on an oil-price assumption of $65 per barrel (/bbl). We expect Azerbaijan to maintain the manat's peg to the US dollar at AZN1.7 per $1, supported by regular foreign exchange interventions and a solid reserve position."